NEW YORK, Jan. 9 /PRNewswire-FirstCall/ -- Scientific Games China ("SGC"), a wholly-owned subsidiary of Scientific Games Corporation (Nasdaq: SGMS), announced today that it has commenced the production of instant lottery tickets in the People's Republic of China ("PRC") for China Sports Lottery Printing, Ltd. ("CSLP") in late December 2008. Furthermore, the Company is proud to announce that instant ticket retail sales in the PRC exceeded 10 billion Chinese Yuan in calendar year 2008.
Through a joint venture with a local partner, SGC, in conjunction with the CSLP, established a secure state of the art instant ticket manufacturing facility at an existing CSLP location in Beijing that now has production capacity of approximately four billion 2" x 4" equivalents. The Company anticipates adding another four billion of ticket printing capacity in the first half of 2009 that will allow SGC to meet existing demand in the market. The facility will be operated by the joint venture for a 15-year period. Revenues to Scientific Games on both the instant ticket contract and the related validation system contract are based on a percentage of retail sales.
Michael Chambrello, President and COO of Scientific Games commented, "We are very excited that after months of hard work, SGC and CSLP were able to create the first state of the art instant lottery ticket printing facility in the PRC, and produce high-quality instant tickets locally for the first time. This facility will provide the foundation for CSL's instant ticket lottery to meet the robust post-Olympic demand in the market and grow for years to come."
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of server based gaming machines and systems, Amusement and Skill with Prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at www.scientificgames.com.
Company Contact:
Investor Relations
Scientific Games
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Forward-Looking Statements
Certain statements in this press release which are not historical facts, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to timing of contracts, renewals or other events, business plans and performance objectives, are based upon management's current expectations, assumptions and estimates and are not guarantees of future results or performance. Actual results may differ materially from those projected in these statements due to a variety of risks and uncertainties and other factors, including, among other things: competition; material adverse changes in economic and industry conditions in our markets; technological change; protection of intellectual property; security and integrity of software and systems; laws and government regulation, including those relating to gaming licenses, permits and operations; seasonality; dependence on suppliers and manufacturers; factors associated with foreign operations; failure to retain, renew or perform on contracts; resolution of pending or future litigation; and other factors described from time to time in our filings with the SEC, including our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and except for our ongoing obligations under the U.S. federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
